Arista Networks (ANET) FY2022 results: revenue $4.4 billion, up 48.6% on the year

Arista Networks, Inc. (ANET) reported revenue of $4.4 billion for fiscal 2022, the year ended 31 December 2022, up 48.6% on the year before. Net income was $1.4 billion, up 60.8%, and diluted earnings per share $1.07. The figures are the company's own, from the 10-K it filed with the SEC on 14 February 2023.

Revenue

$4.4 billion

+48.6% on the year

FY2015FY2022

Operating margin

34.9%

31.4% a year earlier

FY2015FY2022

Net income

$1.4 billion

+60.8% on the year

FY2015FY2022

Diluted EPS

$1.07

+62.4% on the year

FY2015FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2022 · Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	4,381	2,948	2,318	+48.6%
Cost of revenue	1,706	1,067	836	+59.8%
Gross profit	2,676	1,881	1,482	+42.3%
Gross margin	61.1%	63.8%	63.9%
Research and development	728	587	487	+24.1%
Operating income	1,527	925	700	+65.1%
Operating margin	34.9%	31.4%	30.2%
Pre-tax income	1,582	931	739	+69.9%
Income tax	229	90.0	104	+154.8%
Effective tax rate	14.5%	9.7%	14.1%
Net income	1,352	841	635	+60.8%
Net margin	30.9%	28.5%	27.4%
Diluted EPS	$1.07	$0.66	$0.50	+62.4%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2022	FY2021	FY2020	On the year
Operating cash flow	493	1,016	735	-51.5%
Capital expenditure	44.6	64.7	15.4	-31.0%
Free cash flow	448	951	720	-52.9%
Free cash flow margin	10.2%	32.3%	31.1%
Cash from investing	216	-926	-609
Cash from financing	-655	-361	-346
Depreciation and amortisation	62.7	50.3	35.2	+24.6%
Share-based compensation	231	187	137	+23.6%
Buybacks	670	412	395	+62.8%
Diluted shares, weighted	1,266m	1,277m	1,271m	-0.9%
Shares outstanding at period end	1,228m	1,231m	1,219m	-0.3%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	4,886	3,979	3,320	+22.8%
Debt	0.0	0.0	0.0
Operating lease liabilities	44.0	56.5	72.4	-22.2%
Other liabilities	1,846	1,699	1,346	+8.6%
Total liabilities and equity	6,775	5,734	4,739	+18.2%
Fixed assets	95.0	78.6	32.2	+20.8%
Goodwill	266	188	190	+41.2%
Intangible assets	122	93.6	123	+30.6%
Investments	2,391	2,808	1,988	-14.8%
Cash and equivalents	672	621	893	+8.2%
Receivables	923	517	390	+78.7%
Inventory	1,290	650	480	+98.4%
Other assets	1,016	779	644	+30.5%
Total assets	6,775	5,734	4,739	+18.2%

10-K for the year ended 31 December 2022, filed 14 February 2023: the filing.